Why did Vietnam's stock market suddenly increase strongly, becoming one of the top in the region?

chứng khoán - Ảnh 1. — The stock market just experienced a sharp surge - Photo: QUANG DINH

Following a correction to the 1,640 level last weekend, the VN-Index unexpectedly reversed course today, opening with a gain of nearly 30 points. At the close, the HoSE index surged to 1,695.5 points, adding almost 50 points.

Most Asian stock markets performed positively today. With a 4.96% increase, Japan's Nikkei 225 index saw the strongest gains in the region.

Next up was the VN-Index with over 3%. China's stock index also performed well with a gain of over 1%. Meanwhile, many other places saw smaller increases.

Expert's perspective on the stock market surge.

Speaking to Tuoi Tre Online , Mr. Nguyen Quoc Tuyen - Head of Securities Analysis Department at TVI - said that the strong upward trend may stem from investors anticipating information about the market upgrade results, expected to be announced by the international rating organization FTSE Russell on the morning of October 8th (Wednesday, Vietnam time).

According to the T+2 trading rule, investors who buy shares during today's session will receive their shares on the afternoon of October 8th, precisely when the upgrade results are announced.

Therefore, many investors are choosing to buy in anticipation of the event, hoping that if the upgrade information is confirmed, the stock price could rise sharply, Mr. Tuyen said.

Clearly, active capital flows have poured into the market since the start of the session, especially into the securities sector – a sector considered to directly benefit from increased liquidity and positive investor sentiment.

SSI was the leading stock in the rally, after which the money flowed to other sectors such as banking, steel, and real estate.

The VN-Index's increase was among the highest in the region.

Mr. Tuyen predicted that tomorrow's trading session (October 7th) will most likely maintain its upward momentum, thanks to speculative demand ahead of the event.

However, this expert warned about the possibility of strong fluctuations on Tuesday (8-10), especially in the afternoon session, when the shares purchased for T+ trading in anticipation of the upgrade results will be credited to accounts.

"Overall, the prospects of each business in the coming period will largely depend on the Q3 business results, which are expected to be announced in October," Mr. Tuyen said, believing that most business results will be positive as businesses are in a bottoming-out cycle.

Ms. Nguyen Phuong Nga, an analyst at Vietcombank Securities (VCBS), commented: The VN-Index had an impressive upward session, led by large-cap stocks, along with a significant increase in market liquidity.

Amidst the emerging recovery trend, investors should continue to hold performing stocks in their portfolios, while also taking advantage of intraday fluctuations to engage in short-term trading (T+) on stocks in sectors that are recovering and attracting capital after a period of consolidation.

Expert's perspective on the stock market surge.

The VN-Index's increase was among the highest in the region.

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